IBM reported strong revenue growth of $7.21 billion in Q3, up from $6.52 billion last year, with net income increasing to $2.37 billion. Automation segment saw a 22% growth, driven by digital transformation and AI integration initiatives. The company is expected to generate $7.6 billion in revenues, indicating 16.3% YoY growth.

Hybrid Cloud is a major growth driver for IBM, with 12% YoY growth in Q3. Watsonx and Red Hat AI are in high demand, contributing to its growth. The company is projected to generate $7.67 billion in revenues from the Hybrid Cloud segment, showing an 18.2% YoY increase.

IBM is set to acquire Confluent, enhancing its capabilities in real-time data streaming. Competitors like Microsoft and Oracle reported cloud revenues of $7.97 billion and $5.87 billion respectively. IBM’s shares have gained 35.6% in the past year and are expected to continue growing. Earnings estimates for 2025 and 2026 have also increased.

Read more at Nasdaq: IBM Rides on Strength in Software Segment: Will the Uptrend Continue?